Correlation Between Rockfire Resources and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both Rockfire Resources and Accsys Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Rockfire Resources and Accsys Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rockfire Resources plc and Accsys Technologies PLC, you can compare the effects of market volatilities on Rockfire Resources and Accsys Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Rockfire Resources with a short position of Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rockfire Resources and Accsys Technologies.
Diversification Opportunities for Rockfire Resources and Accsys Technologies
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rockfire and Accsys is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Rockfire Resources plc and Accsys Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies PLC and Rockfire Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Rockfire Resources plc are associated (or correlated) with Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies PLC has no effect on the direction of Rockfire Resources i.e., Rockfire Resources and Accsys Technologies go up and down completely randomly.
Pair Corralation between Rockfire Resources and Accsys Technologies
Assuming the 90 days trading horizon Rockfire Resources plc is expected to generate 6.92 times more return on investment than Accsys Technologies. However, Rockfire Resources is 6.92 times more volatile than Accsys Technologies PLC. It trades about 0.15 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.03 per unit of risk. If you would invest 11.00 in Rockfire Resources plc on September 19, 2024 and sell it today you would earn a total of 5.00 from holding Rockfire Resources plc or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rockfire Resources plc vs. Accsys Technologies PLC
Performance |
| Timeline |
| Rockfire Resources plc |
| Accsys Technologies PLC |
Rockfire Resources and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rockfire Resources and Accsys Technologies
The main advantage of trading using opposite Rockfire Resources and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rockfire Resources position performs unexpectedly, Accsys Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Accsys Technologies will offset losses from the drop in Accsys Technologies' long position.| Rockfire Resources vs. Givaudan SA | Rockfire Resources vs. Antofagasta PLC | Rockfire Resources vs. Ferrexpo PLC | Rockfire Resources vs. Atalaya Mining |
| Accsys Technologies vs. Wheaton Precious Metals | Accsys Technologies vs. Blackrock World Mining | Accsys Technologies vs. Neometals | Accsys Technologies vs. GoldMining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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